ONGC strikes gas in Mahanadi deep waters off Odisha coast

ONGC's latest gas discovery could be developed with nearby deposits using shared infrastructure, but its reserves and commercial viability are yet to be established.

In Short

• Further tests will determine how much gas can be recovered
• Latest breakthrough near earlier Utkal and Konark discoveries
• Shared infra for cost-effective production planned under PNG Rules, 2025

ONGC has struck gas in a deepwater well in the Mahanadi Basin, nearly 43 km off the Odisha coast. The discovery, made on September 18 at a depth of around 1,450 metres, could potentially aid India's quest to reduce its energy import bill.

The government-owned oil and gas explorer said gas had been flowing from the well for three days at encouraging rates and sustained pressure. However, it has not disclosed the flow rate or estimated reserves.

Further tests will determine how much gas can be recovered and whether commercial production is viable.

“ONGC will continue to push into deep and ultra-deepwater frontiers in the search for hydrocarbons,” the company said on X.

BUILDING ON EARLIER DISCOVERIES

The discovery comes two years after ONGC’s Utkal and Konark gas discoveries in the Mahanadi Basin in 2024.

The MDW-28 well is located around 23 nautical miles from Konark, in waters about 770 metres deep. It is the first of four wells planned under ONGC’s current campaign in the basin.

Petroleum and Natural Gas Minister Hardeep Singh Puri called the discovery a major milestone for India’s offshore exploration programme.

“The discovery, along with other finds in the area, opens up the potential for cluster development through shared facilities under the PNG Rules, 2025,” Puri said. Such an arrangement could reduce development costs and timelines.

ONGC has not disclosed the reserves or commercial viability of Utkal and Konark.

SAMUDRA MANTHAN CAMPAIGN

Drilling at MDW-28 began on July 25, launching ONGC’s campaign to explore the largely untapped deep waters of the Mahanadi Basin under the Samudra Manthan initiative.

The Directorate General of Hydrocarbons puts the basin’s potential resources at around 45 million tonnes onshore and 100 million tonnes in shallow waters. It has not estimated the potential of the larger deepwater portion.

The Union Cabinet approved Samudra Manthan in July with an outlay of Rs 84,084 crore through 2030–31. The programme covers offshore surveys, deepwater drilling and shared production infrastructure.

The government expects the nationwide programme to add more than 600 million tonnes of oil equivalent to India’s hydrocarbon reserves.

The initiative is part of India’s broader push to increase domestic oil and gas production and reduce its exposure to global price and supply shocks.

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